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Bitcoin News

A roundup of the top Bitcoin news from June 3 to June 17.

Wednesday, June 5

• Full List of 35 Domains Seized in the Wake of Liberty Reserve Money Laundering

Friday, June 7

• How to Tip with Bitcoin on Reddit – bitcointip

Saturday, June 15

• Australian Online Retailer Millennius Now Accepts Bitcoin

CC image by JefferyTurner

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35 Domains Seized by the Government

The Justice Department has published a list of all exchanger domain names seized in the money laundering scandal that brought down Liberty Reserve. Note that many of these money exchangers have nothing to do with Bitcoin, but the scope of this news highlights the regulatory risks of running alternative currency exchanges.

There are 35 domains, all listed below and available here.

ABC-EX.NET
ABSOLUTEXCHANGE.EU
ALERTEXCHANGER.COM
CENTREGOLD.CA
DUYDUYCHANGER.COM
E-NAIRA.COM
EBUYGOLD.COM
ECARDONE.COM
EDEALSPOT.COM
ELECTRUMX.COM
ENTELNOVA.COM
EPAYMONSTER.COM
EXHERE.COM
GETEMONEY.COM
GOLDEXPAY.COM
GOLDMEDIATOR.COM
GOLDNAIRAEXCHANGE.COM
INSTANTGOLDNG.COM
INTEXCHANGE.COM
JTGOLD.COM
M-GOLD.COM
MAGNETIC-EXCHANGE.COM
MEWAHGOLD.COM
MI-BILLETERA.COM
MONEYEXCHANGE.VN
NICCIEXCHANGE.COM
NIGERIAGOLDEXCHANGER.COM
SUPERCHANGE.RU
TACOAUTHORIZED.COM
TUKARDUID.COM
UKRNETMONEY.COM
VELAEXCHANGE.COM
WEBMONEY.CO.NZ
WM-CENTER.COM
WMIRK.COM

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Bitcoin News

A roundup of the top Bitcoin news from May 27 to June 1:

Monday, May 27

• Video Documentary: The Rise and Rise of Bitcoin

Wednesday, May 29

• Liberty Reserve Shut Down; What Will Happen to Bitcoin?

Thursday, May 30

• Seattle Mayor Mike McGinn Calls for Innovation Leadership with Mention to Bitcoin

Friday, May 31

• Mt. Gox Forces Users to Verify Accounts After Government Crackdown

Saturday, June 1

• Bitcoin Now Accepted at VectorToons Art Marketplace via BitPay

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Mt. Gox Changes the Rules

Part of the excitement about Bitcoin is the enabling of anonymous transactions. But this capability also has caused some concerns amidst government crackdown on other anonymous exchanges, namely Liberty Reserve that has been accused of massive money laundering.

So Mt. Gox is Changing the rules. Going forward, all users must have verified accounts. Here’s the announcement.

Statement Regarding Account Verifications

The Bitcoin market continues to evolve, as do regulations and conditions of compliance for Mt. Gox to continue bringing secure services to our customers. It our responsibility to provide a trusted and legal exchange, and that includes making sure that we are operating within strict anti-money laundering rules and preventing other malicious activity.

As a result, beginning May 30th, 2013 all Mt. Gox user accounts are required to be verified in order to perform any currency deposits and withdrawals. Bitcoin deposits do not need verification, and at this time we are not requiring verification for Bitcoin withdrawals.

In the past two months Mt. Gox has invested in more than doubling our verification support staff, and we are currently able to process most verifications within 24~48 hours.

We apologize for any inconvenience this may cause. Please visit the Security Center in your Mt. Gox account if you are not already verified, and keep in mind that being careful to submit the proper documents will result in a much faster processing time.

Regards
Mt.Gox Co. Ltd Team.

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Liberty Reserve Shutdown; What About Bitcoin?

Online currency exchange Liberty Reserve was shut down after allegations of laundering $6 billion. The New York Times reported:

The currency exchange, Liberty Reserve, operated beyond the traditional confines of United States and international banking regulations in what prosecutors called a shadowy netherworld of cyberfinance. It traded in virtual currency and provided the kind of anonymous and easily accessible banking infrastructure increasingly sought by criminal networks, law enforcement officials said.

So, what is the impact on Bitcoin? Is Bitcoin next, some media outlets pondered. Well, there are a variety of opinions:

The New York Times reflected on the differences between Bitcoin and Liberty Reserve, commenting that Bitcoin is not anonymous yet, but could be.

Contrary to conventional wisdom, Bitcoin is not anonymous. In fact, security experts say that if prosecutions like Liberty Reserve continue, the most likely targets are major payment systems like WebMoney and eForexGold, payment systems that security experts contend allow their users to move capital anywhere in the world without verifying their identities.

The Washington Post saw more similarities between Liberty Reserve and Bitcoin.

Of course, that description could just as easily describe Bitcoin. Anyone can create a new address for accepting bitcoins and then transmit funds to other Bitcoin addresses without furnishing identifying information. This feature has raised concerns that the currency has been used for activities such as drug dealing or illegal gambling.

Forbes saw a canary in the coal mine, asking is Bitcoin next.

Will prosecutors move on to shutting down Bitcoin (BTC)? After all the parallels between BTC and LR are strong — both are virtual currencies that use an exchange to convert legitimate currencies into electronic ones.

Patrick Murck, legal counsel for the Bitcoin Foundation, wants to avoid that comparison. As he told the Journal, “I think [the Liberty Reserve indictment] is just another giant, flashing warning light to bitcoin exchanges: If you’re not compliant, there are some serious risks, both at the federal and state levels.

Bloomberg was more optimistic, pointing out that Liberty Reserve’s demise is Bitcoin’s gain.

Bitcoin users should embrace the extra scrutiny and welcome the chance to ensure more security, making the currency less accommodating to criminals. Plus, as some Reddit commenters were quick to point out, the demise of Liberty Reserve will mean less competition for Bitcoin.

That’s the round up for the major press outlets. What do you think?

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